Hey there, finance fam! In a major update, the U.S. Department of Education has resumed collecting student loans after a COVID-era pause. Nearly 43 million borrowers were given temporary relief, but now the process is back and things are heating up. 💸 The new measures allow the Treasury Department to withhold federal tax refunds, a slice of wages, and even government benefits if you’re in default. This could seriously impact your credit score and future loan prospects, so it’s a wake-up call for all! U.S. Secretary of Education Linda McMahon explained in a news release, "American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies." Meanwhile, experts like Michele Raneri from TransUnion highlight that many borrowers might be struggling due to limited capacity or lack of clear guidance on payments. Advocates warn that with rising inflation and living costs, this renewed focus on collections could add extra pressure on financially stretched individuals. Whether you’re a student in South Asia, a tech enthusiast in Southeast Asia, or someone managing finances globally, the message is clear: stay informed and plan wisely to avoid the pitfalls of default. 🤯
Reference(s):
cgtn.com
